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Soaring gas prices convinced me to switch over to Costco's credit card

businessinsider.comApril 12, 2026 at 12:03 PM122 views
B

Personal Anecdote

How They Deceive You

Propaganda

B

Presents mostly factual personal finance advice with minor framing of high gas prices and omissions of practical drawbacks like wait times and reward caps.

Main Device

Personal Anecdote

Relies on author's first-person experience switching to Costco's card due to soaring gas prices to promote its rewards, overshadowing limitations.

Archetype

Consumer savings enthusiast

Business Insider retail reporter advocating everyday hacks for cost-cutting amid economic pressures like fuel costs.

This article informs on Costco card savings amid high gas prices but mildly deceives by omitting long wait times and reward caps.

Writer's Worldview

Consumer savings enthusiast

5 findings · 2 omissions · 5 sources compared

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Narrative Analysis

Verdict: Mostly fair personal finance advice. Business Insider's piece transparently shares a retail reporter's real-world switch to Costco's credit card for gas rewards amid verified 2026 price spikes, delivering actionable math on savings. Minor data tweaks, an unverified quote, and omissions of practical limits slightly inflate appeal but don't mislead on basics.

What Works Well

  • Personal transparency drives credibility: Author Dominick Reuter discloses his Wisconsin location, prior card use, and full wallet shake-up, grounding claims in specifics like "15 cents/gallon cheaper" at local Costco.
  • Data-backed core pitch: Cites AAA averages ($4.15/gal) and Costco's 5% gas rewards (up to $350/year value), with math showing $200+ annual savings for 500-gal drivers—verifiable via Citi terms.
  • Balanced alternatives: Notes non-members can use the card elsewhere at 3% rewards and plugs competitors like Sam's Club or Exxon cards.

"Combining low prices with a rewards credit card takes some of the sting out of each top-up."

This lead delivers on the promise without hype overload.

Key Issues Identified

Slight factual overstatements keep drama high:

  • AAA data (April 12, 2026): National average $4.125/gal, +$0.527 from month prior ($3.598), +$0.929 from year ago ($3.196).
  • Article: "Around $4.15," "more than $0.60" monthly, "nearly $1" yearly. Minor rounding up (~2¢ and 7¢) amplifies urgency to justify switch.

Unconfirmed quote:

  • Attributes to Costco CFO Gary Millerchip (Q1 FY2026 call): "When prices are higher, that will tend to cause members to maybe take the extra mile...because of the incremental value."
  • Transcripts discuss gas demand but no exact match found—bolsters demand narrative without primary verification.

Clickbait framing:

  • Title ("Soaring gas prices convinced me") and opener tie switch to "US and Israel launched the war with Iran," framing conflict as frenzy trigger. Accurate on oil spike (Hormuz brief closure), but phrasing skips documented retaliation context (Feb 2026 strikes post-Iran provocations; Twelve-Day War per BBC/Wikipedia).

Source incentives understated:

  • Dismisses prior card doubts via BI colleagues, NerdWallet, Reddit—sites with card affiliate links (e.g., NerdWallet referrals)—presented as neutral reviews.

Verifiable Omissions and Impact

Two concrete gaps affect full cost-benefit math for readers:

  • Rewards caps: 5% on first $7,000 combined gas/EV spend/year (then 1%); certificates redeemable *only* at Costco, annually. (Citi terms.) High-mileage users (e.g., 1,000+ gal/year) lose edge; author implies uncapped perk.
  • Wait times: Costco stations average 30-60 min lines (Reader's Digest reports; GasBuddy data). Offsets ~15¢/gal savings at $25/hour value; author nods "extra mile" via CFO but ignores queues.

These don't negate advice for low-volume, patient drivers but limit universality.

Author Context

Dominick Reuter: Senior BI retail reporter (2019–present), ex-photojournalist (Reuters, WSJ, AFP 10+ years). Specializes in Walmart/Target/Costco trends; Columbia master's in econ journalism. Clean record—no retractions. Expertise fits; invites tips transparently.

How Others Covered It

  • More corporate/investor tilt: Yahoo Finance eyes Costco's gas expansion as membership driver; Motley Fool links prices to stock upside.
  • Pure savings focus: U.S. News quantifies 10-30¢/gal discounts vs. locals, skips rewards/geopolitics.
  • Behavioral angle: USA Today notes lines at Costco/Sam's via GasBuddy, general rewards tips—no math or war.

BI stands out for personal rewards deep-dive.

Bottom Line: Helpful for Costco shoppers facing $4+ gas (real post-2026 war spike), with strong math and disclosure outweighing tweaks. Ideal for casual drivers; pros may want full caps/wait data. Solid journalism in a clicky package.

Further Reading

Investigation Log · 39 steps

Starting investigation...

Investigating Dominick Reuter

Investigating Business Insider

Searching for ""US and Israel launched the war with Iran" gas prices"

Verify the claim about a war with Iran causing gas prices to rise; check if this event happened or is real.

Searching for "AAA national average gas price current OR 2026"

Verify current or recent AAA US average gas price and trends; note if $4.15, up $0.60 month, $1 year.

Searching for "Costco gas prices vs national average discount"

Verify if Costco gas is typically $0.20 or more below market.

Searching for ""Gary Millerchip" Costco earnings call "extra mile" gas"

Verify the CFO quote about members driving extra mile for gas when prices high.

Costco gas prices are typically discounted $0.05 to $0.40 per gallon compared to local competitors, according to a Reader's Digest article summarizing Costco's pricing model (source: [5], linking to RD.com). A structured comparison table in the same source specifies Costco's potential savings at $0....
### US-Israel Strikes on Iran and Gas Price Implications (Feb 2026) On February 28, 2026, the United States and Israel launched coordinated airstrikes on Iran, targeting military sites, leadership in Tehran and other cities, nuclear facilities, and oil/gas infrastructure. Strikes killed Supreme Lea...
### AAA National Average Gas Prices (as of April 2026) AAA's official fuel prices page (gasprices.aaa.com, accessed via [1] and [4]) reports the U.S. national average for regular gasoline at **$4.125 per gallon** as of **April 12, 2026**. This marks a decrease from yesterday's average of **$4.135**...
Gary Millerchip serves as Executive Vice President and Chief Financial Officer at Costco Wholesale Corporation, as stated on the company's official investor relations governance page (source [2]). His LinkedIn profile lists employment at Costco Wholesale in Bellevue, Washington, United States, with...

Source: Business Insider

Business Insider, founded in 2007, is a New York City-based financial and business news website that publishes original reporting and aggregates content. It has faced criticism for using factually incorrect clickbait headlines to drive traffic and for publishing native advertising where sponsors had editorial control. No specific reputation data exists for its personal finance articles, though it features a dedicated section.

Business Insider, founded in 2007, is a New York City-based financial and business news website that publishes original reporting and aggregates content. It has faced criticism for using factually incorrect clickbait headlines to drive traffic and for publishing native advertising where sponsors had...

Source: Dominick Reuter

Dominick Reuter is a senior retail reporter at Business Insider since 2019, primarily covering Walmart, Target, and Costco with a focus on employee and customer issues and trends. Prior to BI, he worked over a decade as an independent photojournalist for Reuters, the Wall Street Journal, and Agence France-Presse, holding a photojournalism degree from Boston University and a master's in business and economics journalism from Columbia University. No retractions, fact-check failures, or professional misconduct are documented.

Dominick Reuter is a senior retail reporter at Business Insider since 2019, primarily covering Walmart, Target, and Costco with a focus on employee and customer issues and trends. Prior to BI, he worked over a decade as an independent photojournalist for Reuters, the Wall Street Journal, and Agence ...

Searching for "Costco Anywhere Visa card review 2026 gas rewards"

Check reviews of Costco credit card, especially gas rewards value amid high prices.

Searching for "Costco gas offsets membership fee calculation"

Verify author's claim that Costco gas pricing offsets membership fee.

Searching for "Wisconsin average gas price vs national AAA 2026"

Verify if Wisconsin gas is lower than national average.

Searching for "Costco Q1 OR recent earnings call Gary Millerchip gas prices transcript"

Try to find the specific CFO quote from recent earnings call.

Comparing coverage of "Costco gas prices and credit card rewards amid 2026 high gas prices"

### Costco Anywhere Visa® Card by Citi: 2026 Gas Rewards Overview The Costco Anywhere Visa® Card by Citi offers tiered cash back rewards on gas purchases, as detailed on Citi's official site (citi.com, updated Nov 18, 2025). Cardholders earn **5% cash back on gas at Costco** and **4% cash back on o...
### Costco Q1 FY2026 Earnings Call and Gas Prices References Costco Wholesale Corporation (COST) held its Q1 FY2026 earnings call on December 11, 2025, at 10:00 PM GMT, as documented in the GuruFocus transcript ([4]). The Motley Fool provides a full transcript of the same Q1 2026 call ([1]), while ...
### AAA Gas Price Data for Wisconsin vs. National Average (2026) As of April 12, 2026, AAA reports the national average price for regular unleaded gas at $4.125 per gallon. Wisconsin's state average for regular unleaded is $3.797, which is $0.328 below the national figure ([1], [4]). Historical co...
### Costco Gas Savings and Membership Fee Offset Costco's annual Gold Star membership fee is $65, as stated in a Business Insider analysis shared via Insider Food's Facebook post [2]. Executive Membership, at $130/year, offers additional rewards including 5% cash back on gas purchases at Costco gas...

Coverage comparison completed

Found 5 outlet comparisons

Factual Error

States AAA US average gas price is "around $4.15 per gallon, up more than $0.60 from last month and up nearly $1 from a year ago."

Slightly inflates the increases (actual ~$0.53 month, ~$0.93 year as of mid-April 2026), making prices seem even more extreme to justify the switch.

unverified_claim

Quotes Costco CFO Gary Millerchip: "When prices are higher, that will tend to cause members to maybe take the extra mile that it might be involved to get to the gas station because of the incremental value they see there," from "last month's earnings call."

Lends corporate authority to the idea that high prices drive Costco gas demand, but exact quote unconfirmed.

Missing Context

Costco gas stations often have long wait times of 30 minutes to 1 hour due to high demand and self-service pumps.

Author fixates on price advantage and mentions CFO on "extra mile," but omits time cost of lines, which could offset savings for time-sensitive drivers.

Framing

Title "Soaring gas prices convinced me to switch over to Costco's credit card" and lead frame high prices as trigger for personal card switch, with war mention as casual fact.

Clickbaity style exaggerates drama ("soaring," "convinced," "shake up the cards") for engagement, typical BI sensationalism, potentially overstating universality of advice.

Missing Context

Mentions US-Israel war with Iran as cause of high gas prices without noting it was strikes on military/nuclear sites in response to Iran's actions, and that conflict was short (Twelve-Day War).

Frames war as unilateral US/Israel launch sending oil 'into a frenzy,' potentially implying aggression without full context of retaliation cycle.

Missing Context

Costco Anywhere Visa rewards cap at $7,000 combined gas/EV spend per year (5%/4% then 1%), with rewards issued annually as certificate redeemable only at Costco.

Author highlights 5% gas rewards as key benefit for switch but omits cap and redemption limits, which reduce value for high-mileage drivers or non-Costco shoppers.

Source Credibility

Relies on reviews from BI colleagues, NerdWallet, Reddit for dismissing Costco card initially, without noting these are affiliate-linked sites often promoting cards.

Sources have incentives to hype rewards cards; presents as neutral but could skew math.

Writing analysis narrative

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Writing verdict summary

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Investigation complete. Preparing report...

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